LINE Q1 2019

Earnings ResultsLINE CorporationApril 24, 2019

2

This presentation contains forward-looking statements with respect to the current plans, estimates, strategies and beliefs of LINE Corporation (the “Company”). Forward-looking statementsinclude, but are not limited to, those statements using words such as “anticipate,” “believe,” “continues,” “expect,” “estimate,” “intend,” “project” and similar expressions and future or conditionalverbs such as “will,” “would,” “should,” “could,” “might,” “can,” “may,” or similar expressions generally intended to identify forward-looking statements. These forward-looking statements arebased on information currently available to the Company, speak only as of the date hereof and are based on the Company’s current plans and expectations and are subject to a number ofknown and unknown uncertainties and risks, many of which are beyond the Company’s control. As a consequence, current plans, anticipated actions and future financial positions and results ofoperations may differ significantly from those expressed in any forward-looking statements in the presentation. You are cautioned not to unduly rely on such forward-looking statements whenevaluating the information presented and the Company does not intend to update any of these forward-looking statements. Risks and uncertainties that might affect the Company include, butare not limited to:

1. its ability to attract and retain users and increase the level of engagement of its users;2. its ability to improve user monetization;3. its ability to successfully enter new markets and manage its business expansion;4. its ability to compete in the global social network services market;5. its ability to develop or acquire new products and services, improve its existing products and services and increase the value of its products and services in a timely and cost

effective manner6. its ability to increase revenues and its revenue growth rate;7. its ability to maintain good relationships with platform partners and attract new platform partners;8. its ability to attract advertisers to the LINE platform and increase the amount that advertisers spend with LINE;9. its expectations regarding its user growth rate and the usage of its mobile applications;10. its ability to increase revenues and its revenue growth rate;11. its ability to timely and effectively scale and adapt its existing technology and network infrastructure;12. its ability to successfully acquire and integrate companies and assets;13. its future business development, results of operations and financial condition;14. the regulatory environment in which it operates;15. fluctuations in currency exchange rates and changes in the proportion of its revenues and expenses denominated in foreign currencies; and 16. changes in business or macroeconomic conditions.

The information contained in this material are preliminary results as of April 24, 2019, and LINE does not guarantee its accuracy or completeness.

Disclaimer

75 80

21 21

42 44

27 19

165 164

Q1'18 Q1'19

3

77% 79%

Q1 2019 Highlights

Core

Strategic

Others

• Smart Channel release ongoing as scheduled• Sharp increase in number of new Official Accounts

Highlights Monthly Active Users | Four Key Countries(mm users)

* For details on the compensation policy, please refer to https://linecorp.com/en/ir/governance

DAU/MAU%

• Reorganization to ‘company-based’ structure• Established Compensation Committee and policy*• Announced new share-based compensation plan

• LINE Pay MAU increasing consistently due to ‘Pay-Toku’ campaign and other promotions

• Mobile Payment Alliance: allowing payment providers to share merchant base

Japan MAU:+5mm (YoY)DAU/MAU%：86%

Japan Taiwan IndonesiaThailand

4

25.2 27.2 26.9 29.0 29.9

17.517.4 17.7

17.5 18.1

6.16.0 7.2

9.5 7.448.7

50.6 51.9 56.0 55.3

Q1'18 Q2'18 Q3'18 Q4'18 Q1'19

(13%)

(54%)

(33%)

Revenues

75%

25%

YoY+ 13.5% Overseas

Japan

（bn yen）Revenues

Core Business (Ads)Core Business (Communication/Content/Others)Strategic Business

（For Q1 2019）

Geographical breakdown

5

42.744.6 44.7

46.548.0

18.9%

16.1%

13.4%

11.4%

17.2%

Q1'18 Q2'18 Q3'18 Q4'18 Q1'19

▲ 7.1 ▲ 6.9

▲ 8.8

▲ 12.0

▲ 15.0

6.1 6.07.2

9.57.4

Q1'18 Q2'18 Q3'18 Q4'18 Q1'19

YoY + 21.8%

YoY + 12.3%

Segment Revenue and Operating Margin

（bn yen）Core | Revenue / Operating margin Strategic | Revenues / Operating income

（bn yen）

Core Business

9.1 9.2 8.8 9.1 10.6

13.5 14.0 13.9 15.3

15.6

2.6 4.0 4.2

4.5 3.6

25.2

27.2 26.9

29.029.9

Q1'18 Q2'18 Q3'18 Q4'18 Q1'19

7

Q1'18 Q2'18 Q3'18 Q4'18 Q1'19

17,671 21,167 23,265 23,568 26,291

# of LAP Impressions

Q1'18 Q2'18 Q3'18 Q4'18 Q1'19

7,327 7,929 8,526 9,156 9,747

# of Official Accounts

Q1'18 Q2'18 Q3'18 Q4'18 Q1'19

657 672 677 774 925

(accounts)

(accounts in thousands)

*Global paid official accounts

*LAP: LINE Ads Platform

*Global active accounts

(impressions in millions)

YoY+ 18.6%

Note: Others include ad revenues mainly from Livedoor, NAVER Matome, and LINE Part Time Jobs (since Q2 2018)

Core | Ads

# of LINE@ Accounts

Key KPI（bn yen）Revenues

Display AdsAccount AdsOther Ads

8

Core | Ads: Smart Channel

• Release to all LINE users during April• Advertisement exposure to be gradually increased

• Content release from April

• Improve targeting• Optimize distribution logic such as display

timing and period

• Broaden content lineup• Improve UI and UX• Enable more formats such as video

Smart ChannelProviding personalized content including:

• News articles• Weather reports• Horoscopes• Manga• Sticker shop

On-going initiatives

Currentstatus

Products

Global

Features

9

Core | Ads：LINE Sales Promotion

• # new Sales Promotions in Q1: 60 (+400% YoY)• LINE Mileage and LINE Instant Win

implementation increasing

• Cross-data usage between Official Account, display ads, and purchase/store visit data

• Provide CMS and API for campaigns• Increase campaign varieties

• Launched LINE Check-in (alternative to storefront POP display)

• Distribute flyers with retailers and distributors (measuring store visit conversions)

On-going initiatives

Promotional Campaign with Daiei Inc.

Measurement of store visit conversions with LINE Beacon

Conversion tracking fromcampaign participation

using receipts

distribute 2 types of flyers to respective user segment

Distribute flyers(LINE Official Account)

Measure store visit / purchase

Store visit tracking

Examples of flyers

Currentstatus

Data

Features

Products

1.51.7

2.02.3 2.5

Q1'18 Q2'18 Q3'18 Q4'18 Q1'19

2.83.6

4.9 5.36.0

Q1'18 Q2'18 Q3'18 Q4'18 Q1'19

10

9.2 9.4 9.9 9.7 9.5

7.4 7.3 6.9 6.9 7.4

0.9 0.8 0.9 0.9 1.2 17.5 17.4 17.7 17.5

18.1

Q1'18 Q2'18 Q3'18 Q4'18 Q1'19

YoY+ 3.4%

YoY+ 118.1%

Core | Communication / Content / Others

LINE Manga transaction volume(bn yen)

LINE MUSIC transaction volume(bn yen)

YoY+ 67.4%

（bn yen）Revenue

ContentCommunicationOthers

Strategic Business

12

Gourmet-relatedtransaction volume

Q1'18 Q2'18 Q3'18 Q4'18 Q1'19

Travel-relatedtransaction volume

Q4'18 Q1'19

Shopping-related transaction volume

Note: The shopping-related transaction volume includes LINE Shopping and SHOPPING GO The travel-related transaction volume is the sum of past reservations and estimates based on past reservations

• SHOPPING GO (off-line) released December 2018

• LINE Pockeo (take-out) released April 2019YoY

+ 69.0%

Q1'18 Q2'18 Q3'18 Q4'18 Q1'19

YoY+ 79.6%

QoQ+ 456.1%

Strategic | O2O・Commerce

232

430

Q1'18 Q1'19

173

259 261

375

252

Q1'18 Q2'18 Q3'18 Q4'18 Q1'19

13

YoY + 45.8%

YoY + 85.2%

• Seasonality (Q4) due to insurance premium payments in Taiwan

• Reduced LINE Points reward in Taiwan from 2% to 1% from 2019

Strategic | LINE Pay

LINE Pay Global MAU（10k users）（bn yen）

LINE Pay Global Transaction Volume

14

• Various user marketing campaignincluding ‘Pay-toku’

• Mobile Payment Alliance- Cross sharing merchants with

Merpay

• Released LINE Pay app• Online verification (LINE Pay e-KYC) • Preparing co-branded credit card

Strategic | LINE Pay: Initiatives in Japan

• Comprehensive partnership with Starbucks

• Simple app dedicated to payments

• Enables QR and barcode payments, merchant map, and coupons

• LINE Pay app payment during the ‘Heisei Pay-Toku’ campaign will receive double reward points

LINE Pay app released

Merchants

Users

Products

Partnership

Finance Section

16

(mm yen) Q1'18 Q4'18 Q1'19Growth rate

Y/Y Q/Q

Revenues and other operating income 50,209 72,849 55,475 10.5% -23.8%

Revenues 48,736 55,971 55,323 13.5% -1.2%

Operating income 1,246 9,365 -7,892 N/M N/M

Margin(%) 2.5% 12.9% -14.2% -16.7%p -27.1%p

Core | Revenue 42,681 46,478 47,948 12.3% 3.2%

Core | Operating income 8,076 5,279 8,266 2.4% 56.6%

Margin(%) 18.9% 11.4% 17.2% -1.7%p 5.9%p

Strategic | Revenue 6,055 9,493 7,375 21.8% -22.3%

Strategic | Operating income -7,131 -12,037 -14,987 N/M 24.5%

Common | Revenue 1,473 16,878 152 -89.7% -99.1%

Common | Operating expense 1,172 755 1,323 12.9% 75.2%

Note: Common revenue includes other revenues. Operating expense is mainly share-based compensations.

Earnings Summary (Q1 2019)

17

(mm yen) Q1'18 Q4'18 Q1'19Growth rate

Y/Y Q/Q

Revenues and other operating income 50,209 72,849 55,475 10.5% -23.8%

Operating expenses 48,963 63,484 63,367 29.4% -0.2%

Payment processing and licensing 7,306 8,173 8,803 20.5% 7.7%

Sales commission 3,011 4,879 4,254 41.3% -12.8%

Employee compensation 13,493 15,387 17,190 27.4% 11.7%

Marketing 3,931 5,949 7,499 90.8% 26.1%

Infrastructure and communication 2,601 2,719 2,708 4.1% -0.4%

Outsourcing expense 7,937 8,811 9,101 14.7% 3.3%

Depreciation and amortization 2,329 3,283 5,184 122.6% 57.9%

Other operating expenses 8,355 14,283 8,628 3.3% -39.6%

Operating income 1,246 9,365 -7,892 N/M N/M

Margin(%) 2.5% 12.9% -14.2% -16.7%p -27.1%p

Pre-tax income -138 3,580 -11,270 N/M N/M

Corporate tax -1,636 -2,055 547 N/M N/M

Net income from continuing operations -1,774 1,525 -10,723 N/M N/M

Net income -1,770 1,898 -10,718 N/M N/M

Operating Expenses

12.6 13.214.3 15.0

16.1

0.90.7

0.50.4

1.1

13.513.9

14.715.4

17.2

Q1'18 Q2'18 Q3'18 Q4'18 Q1'19

18

2.63.1

4.13.4

5.91.3

1.6

1.72.5

1.6

3.9

4.7

5.8 5.9

7.5

Q1'18 Q2'18 Q3'18 Q4'18 Q1'19

Employee Compensation & Marketing

Employee Compensation（bn yen）

Marketing（bn yen）

Salary・OthersSBC

JapanOverseas

(1.8)

3.7 1.9

(10.7)

-3.5%

6.1%

-18.5%

2.6%

-19.3%

-25.0%

-20.0%

-15.0%

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

0

0

0

0

0

0

0

Q1'18 Q2'18 Q3'18 Q4'18 Q1'19

1.2

9.1 9.4

(7.9)

2.5%

15.1%

-6.9%

12.9%

-14.2%-15.0%

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

0

0

0

0

0

0

Q1'18 Q2'18 Q3'18 Q4'18 Q1'19

19

-0.8%(0.4)

-0.1%

-12.9%

(7.3)

(0.1)-6.1%

(3.0) -8.4%

(4.3)

-22.4%

(12.6)

Operating & Net Income

Operating Income (Margin）（bn yen）

Net Income（Margin）（bn yen）

Net margin (excl. one-time income) (%)Net income (excl. one-time income)

Net incomeNet margin (%)

Operating margin (excl. one-time) (%)Operating income (excl. one-time)

Operating incomeOP margin (%)

Appendix

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Scan the QR code or search for the account name below.

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22

(mm yen) Q1'18 Q2'18 Q3'18 Q4'18 Q1'19Revenues and other operating income 50,209 60,280 51,943 72,849 55,475

Revenues 48,736 50,625 51,850 55,971 55,323

Core Business 42,681 44,577 44,662 46,478 47,948

Ads 25,171 27,169 26,946 28,951 29,853

Account Ads 13,468 13,999 13,912 15,335 15,590

Display Ads 9,128 9,177 8,838 9,078 10,624

Others1) 2,575 3,993 4,196 4,538 3,639

Communication 7,415 7,313 6,905 6,894 7,427

Content 9,231 9,342 9,931 9,733 9,492

Others 864 753 880 900 1,176

Strategic Business 6,055 6,048 7,188 9,493 7,375

LINE FRIENDS 3,390 4,092 5,155 6,942 4,463

Fintech/AI/Commerce/Mobile2) 2,665 1,956 2,033 2,551 2,912

Other operating income 1,473 9,655 93 16,878 152

Revenues and Other Operating Income

Note: 1) Other Ads from Q2 2018 include LINE Part Time Jobs in addition to Livedoor and Naver Matome ad revenues2) Equity-method starting Q2 2018

23

(mm yen) Q1'18 Q2'18 Q3'18 Q4'18 Q1'19

Operating expenses by segment 48,963 51,205 55,519 63,484 63,367

Core business 34,605 37,378 38,657 41,199 39,682

Strategic business 13,186 12,965 16,034 21,530 22,362

Common 1,172 862 828 755 1,323

Operating expenses by account 48,963 51,205 55,519 63,484 63,367

Payment processing and licensing 7,306 7,837 7,507 8,173 8,803

Sales commission 3,011 3,939 4,131 4,879 4,254

Employee compensation 13,493 13,884 14,728 15,387 17,190

Marketing 3,931 4,655 5,775 5,949 7,499

Infrastructure and communication 2,601 2,482 2,681 2,719 2,708

Outsourcing expense 7,937 6,976 8,101 8,811 9,101

Depreciation and amortization 2,329 2,620 2,903 3,283 5,184

Other operating expenses 8,355 8,812 9,693 14,283 8,628

Operating Expenses